Dhaka, Bangladesh (BBN) – The country’s stocks bounced back on Monday following relaxation market-cooling measures by the regulator, a day after the market suffered the steepest drop in 14 years.
The decision of the Securities and Exchange Commission (SEC) to raise the exposure limit of brokerage houses to individual investors to BDT 00 million helped the market to return to a positive territory, market operators said.
On Sunday, the SEC decided to increase the single-client borrowing limit to BDT 100 million from BDT 50 million for stockbrokers and extend the deadline for adjusting the margin loan for those clients whose credit exposure is over BDT 100 million to September 30 this year from August 31.
Turnover at the Dhaka Stock Exchange (DSE), however, continued to slide on Monday, totalling at BDT 1 2.86 billion, down over 11 percent over the previous working day, according to data.
On the other hand, the benchmark DSE General Index (DGEN) shot up by 125.56 points or 2.02 per cent to end at 6325.76, recovering from previous session when it plunged 3.19 per cent or 204.75 points — its highest single-day drop since November 6, 1996.
On Sunday, the country’s stocks nosedived with the DSE suffering the highest single-day fall since the 1996 crash because of the regulators’ market-cooling tightening of credit.
Chittagong stocks marked a sharp rise on the day with the CSE Selective Categories Index increasing 1.91 percent to 12,131.
BBN/SSR/SI/AD-27July10-4:18 am (BST)